Automobile Industry in India

India is the world’s third-largest automobile market, the largest manufacturer of three-wheelers, passenger vehicles, and tractors, and the second-largest manufacturer of two-wheelers.

Advantage India

Growing
Demand

* Rising middle-class income and a huge youth population will result in strong demand.

* In November 2023, the total production of passenger vehicles*, three-wheelers, two-wheelers, and quadricycles was 2.22 million units.

* The global EV market was estimated at approximately US$ 250 billion in 2021 and by 2028, it is projected to grow by 5 times to US$ 1,318 billion.

Growing Demand

Opportunities

* India could be a leader in shared mobility by 2030, providing opportunities for electric and autonomous vehicles.

* Focus is shifting to electric vehicles to reduce emissions.

* By 2030, the Indian government has committed that 30% of the new vehicle sales in India would be electric.

Opportunities

Rising
Investment

* The automobile sector received a cumulative equity FDI inflow of about US$ 35.40 billion between April 2000 - September 2023.

* India is on track to become the largest EV market by 2030, with a total investment opportunity of more than US$ 200 billion over the next 8-10 years.

Rising Investment

Policy
Support

* Automotive Mission Plan 2016-26 is a mutual initiative by the Government of India and the Indian automotive industry to lay down the roadmap for the development of the industry.

* FAME Scheme was extended for a further period of 2 years up to March 31st, 2024.

Policy Support
Last updated: Feb, 2024

Automobile Clusters

  • Mumbai-Pune-Nashik-Aurangabad
  • Chennai-Bengaluru-Hosur
  • Delhi-Gurgaon-Faridabad
  • Kolkata-Jamshedpur
  • Sanand-Hansalpur-Vithalpur
Agriculture India

Posters

MORE
REVVING UP

REVVING UP

India is expected to become the third largest market for electric vehicles by 2025 at 2.5 million vehicles.

IBEF Campaigns

MORE
Gulfood Dubai 2023

Gulfood Dubai 2023

APEDA India Pavilion Gulfood February 20th-26th, 2022 | World Trade Centre,...

India Organic Biofach 2022

India Organic Biofach 2022

Ibef Organic Indian Pavilion BIOFACH2022 July 26th-29th, 2022 | Nuremberg, ...

Case Studies

MORE

The Growth of Ayurveda in India

The Growth of Ayurveda in India

Ayurveda, an ancient health system originating from India, has a longstanding history. It revolves around using plants and herbs to maintain health an...

The Success of Digital India

The Success of Digital India

India's digital ecosystem has undergone an enormous change in recent years. The progressive integration of government services into digital platfo...

A Green, Sustainable Cotton: Kala Cotton

A Green, Sustainable Cotton: Kala Cotton

Kala Cotton is indigenous to India and one of the few “Old World” varieties that is still being cultivated on a large scale in India. Farm...

IBEF BLOG

MORE
Mission Net-Zero: A Strategic Plan for the Indian Chemical Sector
6 Mar 2024

Mission Net-Zero: A Strategic Plan for the Indian Chemical Sector

In recent years, the pursuit of net-zero emissions has garnered substantial...

Role of Third-Party Logistics Providers in Indian D2C.
6 Mar 2024

Role of Third-Party Logistics Providers in Indian D2C.

Role of Third-Party Logistics Providers in Indian D2C From the buzzing str...

Increasing the Competitiveness of India's Electronic Exports
6 Mar 2024

Increasing the Competitiveness of India's Electronic Exports

The electronic sector in India has emerged as a key driver of the country&#...

Partners
Loading...